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To: Glenn Petersen who wrote (216)6/27/2022 3:56:55 PM
From: Sun Tzu  Read Replies (1) | Respond to of 247
 
Because typically the economy starts booming (not just recovering) within 30 months of a bear market and money becomes plentiful. So if a risky company is going public during current conditions, then first of all their valuation is unlikely to be unreasonable. And secondly, if they have managed to raise enough money to last for the next 3 years, then even if they don't achieve all that they want and things go bad, within 3 years they will have access to new funds and will be ahead of where they are today.

I have been debating with myself if I should buy HOOD. I really came close to pulling the trigger near their recent lows. They certainly show value at these prices. But I just can't be sure they will last for the next 3 years, especially with the proposed SEC changes.